Reengineering the Food Supply Chain: The ECR Initiative in the Grocery Industry

Abstract

The food supply chain moves food from the farm gate to the consumer, transforming raw commodities into products that can be conveniently purchased, prepared, and consumed. The chain is comprised of food procurement and manufacturing companies, wholesale/distribution firms, brokers, food service firms and restaurants, and retail grocery firms. It is remarkable for its efficiency, diversity of firm sizes and types, and responsiveness to consumers. is the radical redesign and restructuring of business processes (Hammer). In place of incremental adjustments to changing conditions and opportunities, it calls for a rethinking of business activities, information flows, and organizational forms from a whole systems perspective. Reengineering is evident throughout the food supply chain and the broader food system, but perhaps the most comprehensive reengineering effort is the grocery industry's Efficient Consumer Response (ECR) initiative. This industry-wide effort is bringing together food manufacturers, distributors, brokers, and retailers. The aim is to increase efficiency through new forms of cooperation and coordination that are often based on